THE tax reform law, which is now being implemented, will benefit everyone, including

the poor, Presidential Spokesperson Harry Roque, Jr. said on Wednesday.

Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act,
will reduce the burden of Filipinos from paying income taxes while giving the poor cash
grants, according to Roque.

“Of course you know that January 1 is the implementation of the TRAIN reform. Let me
stress though that the implementation of TRAIN relates to the fact that those having an
annual taxable income of P250,000 and below or at least P21,000 a month are now
exempted from personal income tax. Thirteenth-month pay and other bonuses
amounting to P90,000 are likewise tax-exempt,” Roque said in a press briefing in
Malacañang.

Likewise, Roque said that a portion of TRAIN revenues will be used to help fund the
government’s conditional cash transfer (CCT) program.

“We have also begun implementing the P200 per month … as a measure of mitigating
the effects of TRAIN, at least to the poorest of the poor in our communities,” he said.

The cash grant will be distributed between January to July 2018, said Roque.

On the concern that the TRAIN’s revenue-enhancing provisions would lead to higher
prices, Roque clarified that the TRAIN proceeds will go back to the people in terms of
infrastructure, which is expected to stimulate the economy.

“Well, someone has to pay for Build, Build, Build that will produce positive effects for
everyone and of course, it is done through taxes,” he underscored, referring to the
massive infrastructure program of the Duterte administration.

“Taxation is one of the three inherent powers of the state and for as long as it is
approved by the people’s representatives, which is Congress, is it acceptable in a
democratic state,” he explained.

Roque also said the Department of Trade and Industry is doing its mandate to monitor
price movements in the market.
http://conceptnewscentral.com/index.php/2018/01/03/train-law-benefits-everyone-
including-poor-roque/
DAVAO CITY, July 18 (PIA)- Small and Medium Enterprises (SMEs) are benefiting from
the tax breaks under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The SMEs are now covered by a higher value-added tax (VAT) threshold and can
choose from two options where they can pay lower income taxes.

The TRAIN Law VAT threshold is now at P3 million as compared to the previous pre-
TRAIN VAT threshold of P1.9-million. This means that those SMEs earning below P3-
million will be exempted from the 12% VAT and has the options of paying the flat tax of
8% income tax or the schedular personal income tax rates less business costs and
expenses.

Department of Finance Secretary Carlos Dominguez III said the increase in the
percentage and income tax collections as compared to the 2017 January to June period
indicated that SMEs and self-employed taxpayers that have not exceeded the P3 million
VAT threshold are choosing to pay the eight percent income tax on gross sales or the
percentage tax and the graduated income tax rates provided by TRAIN.

Data from the Department of Finance (DOF) showed that from the first six months of
2018 collections from the percentage tax and income tax increased as VAT collections
decreased. This showed that SMEs are benefitting from the raised VAT threshold.

From January to June 2018 VAT collections amounted to P63.217-billion which is lower
compared to 2017 figures of P72.813 billion (Jan-June 2017).

Percentage tax collections rose to P18.079 billion in January to June 2018 as compared
to P12.130 billion in the same period last year. They also surpassed the Bureau of
Internal Revenue (BIR) target of P14.803 billion.

Income tax collections January to June 2018 was at P207.332-billion, which is higher
than the collections in the same period of 2017 recorded at P206.454 billion.

Overall tax collections in the first six months of 2018 was at P500.585 billion which is
higher than last year's (January to June) collection of P489.456 billion. (RGA/PIA-
Davao)

https://pia.gov.ph/news/articles/1010528
MANILA, Philippines – Royd Agapito (not his real name), a 25-year-old market analyst
for a research firm, got what he wanted: higher take-home pay. But what he did not
expect is a higher monthly household bill that would offset the gains he would receive
from the newly-implemented Tax Reform for Acceleration and Inclusion (TRAIN)
law.The administration of President Rodrigo Duterte started 2018 by implementing
TRAIN, which reduced personal income taxes but increased those on cars, tobacco,
sugar-sweetened beverages, and fuel.

Payroll managers have started adjusting their systems to reflect the new withholding tax
rates. Supermarkets, oil retailers, convenience stores, and even sidewalk vendors have
begun updating their price lists.

A visit to Puregold supermarket on Monday, January 8, showed that a pack of Marlboro

Black 20s is more expensive now at P87.50, from last year's P68.

By mid-January, motorists will also have to brace for higher fuel prices, once existing
petroleum stocks of retailers are used up. (READ: Filipinos to feel impact of higher fuel
tax starting mid-January)

Higher fuel prices will also have a trickle-down effect on public transport service
providers, which have started seeking fare hikes. (READ: Grab files petition for 5% fare
hike and Fare hike? Uber to gauge impact of new taxes first)

Trickle-down effect

Agapito, who earns P30,000 monthly, will save P3,438 a month because of the new
withholding tax rates. But he said he decided to stick to his old Toyota Vios instead of
upgrading to a new car, given the hike in auto excise tax, which mainly hit mass market
vehicles. (READ: Honda Philippines raises prices for most cars due to tax reform)

"I don't think TRAIN will provide significant impact to an average wage earner. It is like
the government is just giving us a new perspective to look at our taxes. You have higher
pay, but electricity, transport, grocery bills will also be higher," Agapito said in an
interview.

He added that he would also need to cut down on soda to save money. (READ: Existing
stocks of sweetened drinks exempt from new tax rates – DTI)

Starting mid-January, the retail price of a one-liter bottle of Coca-Cola, for instance, is
projected to increase to P43 from the current P31, an increase of P12. his is because of
the P12-per-liter tax on drinks using high fructose corn syrup. For drinks using sugar
and artificial sweeteners, a P6-per-liter tax has been imposed. However, all kinds of
milk, 3-in-1 coffee, natural fruit juices, vegetable juices, and medically-indicated
beverages are exempt.
Additional burden

While power distributors, oil companies, fuel retailers, and tobacco manufacturers are
directly affected by TRAIN, First Metro Investments Corporation vice president Cristina
Ulang said they have one thing going for them.

"The additional burden is something they can pass on to consumers," Ulang explained.

This, however, does not hold true for small-time vendors in the Philippines, like 48-year-
old Meanne Reyes, who has two kids.

Reyes, who sells sugar-sweetened drinks, snacks, and tobacco along Amang
Rodriguez Avenue in Pasig City, said she has fewer stocks due to TRAIN.

"Dati P5 per stick lang 'yung Marlboro. Ngayon binebenta ko na ng P7 isa. Dahil mas
mahal na 'yung pakete, binawasan ko na lang 'yung pagbili ko ng supplies. Ang taas
nang itinaas. Paano naman kaming walang suweldo at pagbebenta ang kabuhayan?"
Reyes asked.

(Marlboro used to be P5 per stick. Now I'm selling it for P7 each. Since an entire pack is
now more expensive, I was forced to buy fewer supplies. The price hike is significant.
What will happen to people like me who have no fixed income and depend on sidewalk
vending to earn a living?)

Protecting from impact

To protect the poor from higher prices of commodities, Finance Secretary Carlos
Dominguez III said the Department of Social Welfare and Development (DSWD) is
mandated to provide targeted cash transfers to the poorest 10 million households.

Each household would get P2,400 per year in 2018, as well as P3,600 per year in 2019
and 2020.

Dominguez said the cash transfer will be implemented in the 1st quarter of 2018.

"DSWD will identify beneficiaries based on the [list] – the Pantawid Pamilyang Pilipino
Program and the social pension beneficiaries. The budget for the unconditional cash
transfer is included in the 2018 budget, totaling P25.7 billion," the finance chief said in a
Malacañang briefing.

Over the course of 5 years, Dominguez said the government will raise over P786 billion
in revenues because of TRAIN.
"These revenues will fund the President's priorities: social and infrastructure programs.
In package one, Congress passed two-thirds of the needed revenue for 2018 and this is
expected to pass the balance in early 2018 to help us achieve our revenue deficit
targets," he said.

The finance chief added that the 2nd package of the comprehensive tax reform
program, which is set to be passed within the month, is seen to lower corporate income
taxes and modernize fiscal incentives.

All in all, Dominguez said the government targets to raise about P2 trillion from the
comprehensive tax reform program to help fund the country's massive P8-trillion
infrastructure buildup, which is seen to improve people's lives from all ranks. –
Rappler.com https://www.rappler.com/newsbreak/iq/193170-train-tax-reform-law-
effects-filipino-consumers-workers

Most Filipino netizens view the passage and implementation of the Tax Reform for
Acceleration and Inclusion (TRAIN) law in negative light, a recent study by Research
and Tech Lab (RTL) showed.

The study conducted from January to February this year, digital research firm RTL
found that out of 861 recorded sentiments online regarding the TRAIN Law, 94.08
percent of the engagements considered not helpful at all for the country.

“The top three social media sentiments read by the research analytics group say that
the TRAIN law is more of a burden to the Filipinos, it is anti-poor, and most netizens are
generally dismayed by the overall impact of the said law,” it said.

The TRAIN was signed into law by President Rodrigo Duterte on December 19, 2017,
effectively lowering the personal income tax rates and expanding the value-added tax
(VAT) base starting January 2018.

“Other top reasons that TRAIN law is a ‘No’ for most of the online public is that they
claim that it is only beneficial to government officials while it is unfair to minimum wage
earners,” RTL said.

In a separate statement, the Department of Finance said lower personal income tax
rates would give Filipino consumers a combined P10 billion “cash bonanza” to spend
more each month.

“Our estimate is P10 billion a month in the reduction in collections from the withholding
tax ... So that means to say people are going to have P10 billion a month more to
spend,” Finance Secretary Carlos Dominguez III was quoted as saying in the statement.
“In effect, those with a taxable annual income of P250,000, on average, would be able
to take home a cash bonanza equivalent to a substantial one-month’s pay per year,” he
said.

In the same statement, the DOF said it has yet to collate data on the net amount of
additional revenues raised from the measures put in place by the TRAIN law.

“The increase in take-home pay is actually useless because of the increased price of
some necessities,” according to the RTL study.

As a result of higher excise tax rates, prices of liquefied petroleum gas (LPG) will go up
P1 per liter, diesel by P2.50 per liter, and gasoline by P2.65 per liter.

“The study revealed that majority of Filipinos is worried about the burden that the newly
imposed tax plan will bring unto the country, especially for the working class,” RTL said.

“As seen in their social media responses, Filipinos are now vigilant more than ever in
seeing the country grow and the online universe became the top tool in expressing their
thoughts and feelings,” it said.

It noted, however, that a percentage of Filipinos remained positive that the tax reform
could be beneficial in the long-term.

“Meanwhile, only 5.92 percent of the sentiments analyzed turned out to be hopeful on
the effects that the Train law might bring in the long run. Some believe that the new
system will be beneficial to the country’s progress and believe that the Train law will
discipline ordinary Filipinos,” it said.

“Furthermore, only 1 percent of the sentiments gathered supports the implementation of

the Train law and defends it from critics,” it said. —Jon Viktor Cabuenas/VDS, GMA
News http://www.gmanetwork.com/news/money/economy/647483/most-filipino-
netizens-view-train-law-negatively-study/story/